In the emerging global economy, e-commerce and e-business have increasingly become a necessary component of business strategy and a strong catalyst for economic development. The integration of information and communications technology in business has revolutionized relationships within organizations and those between and among organizations and individuals. Specifically, the use of e-commerce and e-business solutions by businesses and individuals has enhanced productivity, reduced costs, encouraged greater customer participation, and enabled mass customization.
E-commerce or e-business solutions may allow an individual to perform financial transactions over the Internet through a secure website. This type of service enables customers to do their banking or financial transaction processing from anywhere where Internet access is available. In many cases, a web browser is utilized and any normal Internet connection is suitable.
In recent years, consumers have drastically reduced the use of cash payment for goods and services and have more frequently relied on credit cards, debit cards, stored value cards, or electronic transfer of funds associated with a financial account to facilitate financial transactions. Financial institutions have begun offering businesses a credit card account that offers account holders the option of shifting invoice-based check spending to a business credit card. For example, business credit cards designed for contractors have the objective of inducing them to do away with invoice-based payments by check and shift to more frequent use of their business credit cards.
Contractors and other businesses frequently make purchases or issue disbursements for multiple projects, clients, or customers in a single financial transaction. When a contractor uses an open-loop credit card to make a single purchase of multiple items for a variety of projects, an electronic billing application generally allows the contractor to view only limited data regarding the transaction (e.g., the date, the name of the vendor, and the total dollar amount charged to the credit card) and to electronically settle payment. A solution has developed as disclosed in parent application, U.S. patent application Ser. No. 11/952,457, now U.S. Pat. No. 7,949,579, which allows a contractor (or other business or individual) to allocate a percentage or dollar amount of the total dollar amount charged to the credit card at a point of sale to a particular project, job, or client matter. As a result, the contractor may need to collect and examine numerous receipts to properly charge clients for items purchased for a particular project.
Given the increased availability of electronic resources, such as financial institution web sites that are available to account holders over the Internet, it is now possible to provide account holders with a real time display of account activity as well as available account options. Although financial institutions have increased the availability of resources to account holders, these resources are generally uniform without regard for individual account holder behaviors and preferences. Co-pending U.S. patent application Ser. No. 12/388,730, filed on Feb. 19, 2009 provides a solution for account holders to enter individual preferences.
While the solution proposed in U.S. patent application Ser. No. 12/388,730, filed on Feb. 19, 2009 provides some ability for account holders to make pre-purchase settings, it does not provide a complete interactive solution to account holders when the system detects activity suspected as fraudulent. While the system may provide users with an alert or deny a transaction based on user settings, it does not allow the user to make instantaneous decisions based on detected activity.
Since mobile devices are more frequently being carried by account holders, it has become increasingly possible for account-holders to receive real-time notifications of account-related activity. Currently, some existing systems provide alerts related to account-related activities. The alerts may be generated via text message, email, or voice mail. Account holders are thereby able to immediately contact the account holding institution if an invalid charge has been made to the account. One problem with the use of existing mobile devices is the difficulty of obtaining the appropriate applications for use in conjunction with a credit card. Typically, when a cardholder actives a card, he is informed over the telephone where the mobile application can be found. Many cardholders simply fail to write down the information and do not remember that the mobile application is available.
Today, most fraud controls in are outbound and include text messaging, email, voice. The users do not have the reciprocal ability to notify the financial institution or card issuer regarding card activity unless they contact customer service calling centers through the traditional phone channels. Accordingly, no automated interactive system is provided for users to control financial account activity.
Furthermore, existing fraud controls are generally post-purchase controls. Users are not provided with the ability to instruct the financial institution to deny purchases or take other specific actions prior to the actual purchases. Typically, users can only contact financial institutions post-purchase to report fraudulent activity.
Thus, while card and electronic payment methods are generally more convenient for both purchasers and vendors, the use of these methods generates increased possibility for difficulties. Such difficulties may include, for example, fraudulent activity on stolen credit cards or stolen account numbers.
Accordingly, a solution is needed that leverages data available to financial institutions for each account holder in order to provide valuable up-to-date information to each account holder in an efficient manner and allows the account holders to take action that will determine an outcome instantaneously. Furthermore, a solution is needed that leverages the data to provide differential data to each account holder dependent upon account holder preferences and further provide the data that can be expanded to display details in order for account holders to view a complete picture of transactions and overall account activity.
In addition to allowing user input regarding account usage, fraud is also reduced by enhancing authentication procedures. Existing authentication procedures such as the requirement for passwords, PINs, and security questions are often susceptible to hackers and are further inconvenient for users who have multiple passwords, and numbers to remember. Accordingly, embodiments of the invention leverage the capabilities of mobile devices in order to provide more convenient and secure authentication procedures.